TAILIEUCHUNG - Dollar Cost Banding - A New Algorithm for Computing Inventory Levels for Army Supply Support Activities

Distribution Management (DM), formerly known as Velocity Management (VM), is an Army initiative to dramatically improve the performance of key logistics processes: distribution, repair, stockage determination, and financial management. This monograph describes how the then Velocity Management initiative was used to develop and implement a new algorithm for computing inventories maintained by Army supply support activities (SSAs). The new algorithm is called dollar cost banding (DCB), and it departs in important ways from the methodology that the Army had been using. First, rather than using a single qualification logic for all items, the decision of whether an item qualifies for. | RAND ARROYO CENTER CHILD POLICY CIVIL JUSTICE EDUCATION ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE INTERNATIONAL AFFAIRS NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY SCIENCE AND TECHNOLOGY SUBSTANCE ABUSE TERRORISM AND HOMELAND SECURITY TRANSPORTATION AND INFRASTRUCTURE This PDF document was made available from as a public service of the RAND Corporation. Jump down to document 6 The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. Support RAND Purchase this document Browse Books Publications Make a charitable contribution For More Information Visit RAND at Explore RAND Arroyo Center View document details Limited Electronic Distribution Rights This document and trademark s contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for noncommercial use only. Permission is required from RAND to reproduce or reuse in another form any of our research documents. This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity. Dollar Cost Banding A New Algorithm for Computing Inventory Levels for Army Supply Support Activities Kenneth J. Girardini Arthur Lackey Kristin Leuschner Daniel A. Relles Mark Totten Darlene J. Blake Prepared for the United States Army Approved for public release distribution unlimited ARROYO .

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